INDT
Indus Realty Trust Inc
Price:  
66.99 
USD
Volume:  
258,587
United States | Equity Real Estate Investment Trusts (REITs)

INDT WACC - Weighted Average Cost of Capital

The WACC of Indus Realty Trust Inc (INDT) is 8.0%.

The Cost of Equity of Indus Realty Trust Inc (INDT) is 7%.
The Cost of Debt of Indus Realty Trust Inc (INDT) is 13.95%.

RangeSelected
Cost of equity5.6% - 8.4%7%
Tax rate3.7% - 14.4%9.05%
Cost of debt4.0% - 23.9%13.95%
WACC5.3% - 10.8%8.0%
WACC

INDT WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.380.63
Additional risk adjustments0.0%0.5%
Cost of equity5.6%8.4%
Tax rate3.7%14.4%
Debt/Equity ratio
0.250.25
Cost of debt4.0%23.9%
After-tax WACC5.3%10.8%
Selected WACC8.0%

INDT's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for INDT:

cost_of_equity (7.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.38) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.